The trial balance of Gaolee Fashion Center contained the following accounts at November 30, the end of the company’s fiscal year.

Adjustment data:

1. Supplies on hand totaled $2,600.

2. Depreciation is $11,500 on the equipment.

3. Interest of $3,800 is accrued on notes payable at November 30.

4. Inventory actually on hand is $44,400.

Instructions

a. Enter the trial balance on a worksheet, and complete the worksheet.

b. Prepare a multiple-step income statement and an owner’s equity statement for the year, and a classified balance sheet as of November 30, 2020. Notes payable of $20,000 are due in January 2021.

c. Journalize the adjusting entries.

d. Journalize the closing entries.

e. Prepare a post-closing trial balance.

Transcribed Image Text:

Gaolee Fashion Center Trial Balance November 30, 2020 Debit Credit Cash $ 20,700 Accounts Receivable 30,700 Inventory Supplies Equipment Accumulated Depreciation-Equipment Notes Payable Accounts Payable Owner's Capital Owner's Drawings 44,700 6,200 133,000 $ 28,000 60,000 48,500 93,000 12,000 Sales Revenue 755,200 Sales Returns and Allowances 8,800 497,400 140,000 24,400 14,000 12,100 16,700 Cost of Goods Sold Salaries and Wages Expense Advertising Expense Utilities Expense Maintenance and Repairs Expense Freight-Out Rent Expense 24,000 Totals $984,700 $984,700